MARKET OVERVIEW - GLOBAL IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET
In-flight entertainment (IFE) provides entertainment to passengers during flight and enhances their inflight experiences. Initially, In-flight entertainment can be in the form of food and drink services, along with an occasional projector movie during lengthy flights. In-flight entertainment (IFE) has been an important component in comfort and entertainment for passengers in the air. To increase passengers’ overall flight experience and reduce the psychological and physical stress caused due to the cabin environment when flying, In-flight entertainment (IFE) is necessary and plays an important role. Passengers going for IFE is one of the most important selection criteria while booking travel on a certain airline. Airlines have been developing their IFE offerings to the passengers to fulfil the passengers' expectations. With the passing of time, the IFE system has also evolved to be an In-Flight Entertainment & Connectivity (IFEC) system. IFE system consists of audio, video, games, moving maps, flight info, terminal connecting flights, chat, phone, SMS, shopping, destination info, attendant call, and other endless options for their inflight experience.
MARKET DRIVERS
The need to enhance the passenger experience, In-flight entertainment, and the connectivity landscape is witnessing immense innovation in the IFE field and this factor will boost the market growth over the forecast period. The technology trends such as commoditization of hardware and on-board broadband, and the adoption of smart devices, and consumer electronics will drive the market growth. The increasing consumer demand for entertainment experience in the air that requires high-quality displays, content anywhere, social networking, and Bring-Your-Own IFE (BYO-IFE) will propel the demand for the In-Flight Entertainment and Connectivity Market. In addition, the entertainment and cabin management system offer passengers a simple way to control a multitude of cabin functions, enjoy multimedia entertainment, or remain productive with active internet connectivity. The consumer trend of using multiple screens will expect to drive market growth.
MARKET OPPORTUNITIES
The In-Flight Entertainment and Connectivity Market has gone through the traditional IFE architecture from head-end-centric to seat-centric will bring an innovative and robust experience to the passenger. It offers advantages such as reducing aircraft weight, resulting in higher fuel efficiency. The market also provides opportunities to telecommunication service providers which are battling the rapidly declining average revenue per user (ARPU) and cutthroat market competition. In addition, technological development will affect and potentially accelerate the in-flight entertainment/connectivity market. Alliances formed by organizations from throughout the airline in-flight infotainment ecosystem will bring potential opportunities. Furthermore, deployment by low-cost carriers with wider availability of a cost-effective connectivity solution and large-scale deployment will have future growth potential for the market.
MARKET RESTRAINTS
In-Flight Entertainment and Connectivity Market is limited by the initial high cost which is associated with networking technologies and connectivity hardware. Airlines companies are experiencing the high cost of equipping planes, poor performance, and lower net promoter scores. It requires complex and most likely expensive technological development and investment for connecting the screens to the network which is very expensive
MARKET GROWTH CHALLENGES
The increased-enabled of digital airplanes and widespread connectivity have led to increased interaction with many information systems that are outside the traditionally defined security perimeter and bring new vulnerabilities in the market. The Market has been facing challenges such as increasing concerns about cyber security associated with In-Flight Entertainment and Connectivity
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global In-Flight Entertainment and Connectivity market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increasing consumer demand for entertainment experience in the air that requires high-quality displays, content anywhere, social networking, and Bring-Your-Own IFE (BYO-IFE) will propel the demand for the In-Flight Entertainment and Connectivity Market and is expected to witness growth at a specific CAGR from 2021-2028.
IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET SEGMENTAL OVERVIEW
The global In-Flight Entertainment and Connectivity market comprises different market segments like component, class, aircraft type and geography.
IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET BY COMPONENT
By component, in-flight entertainment and connectivity include key segments of
- Hardware
- Connectivity
- Content
The hardware segment is presented to lead the market during the forecast period. The growth of the segment is attributed to increasing product launches by the company. The hardware segment enables the upload, store, and transfer of entertainment content on the in-flight entertainment systems. Henceforth, these factors drive segment growth.
IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET BY CLASS
The in-flight entertainment and connectivity market is divided by class
- First Class
- Business Class
- Economy Class
The first-class segment is expected to dominant over the coming period. The first-Class segment is premium airline service that enables well-quality entertainment with the latest on-demand in-flight entertainment and live streams of choice TV shows, on the innovative AVOD system, and through the personal 23.5” LCD that's controlled conveniently by a touchscreen and premium handset. It also enables a fine selection of in-flight magazines and shopping catalogs and hence, these are some factors that drive the segment growth and the segment is growing at the fastest CAGR during the forecast period.
IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET BY AIRCRAFT TYPE
The in-flight entertainment and connectivity are divided by aircraft type that includes
- Narrow-Body Aircraft (NBA)
- Wide-Body Aircraft (WBA)
- Very Large Aircraft (VLA)
The Narrow-Body Aircraft (NBA) is estimated to grow at the highest CAGR during the forecast period. Narrow-Body Aircraft (NBA) is in demand and the growth is owing to its fuel-efficient approach. In addition, there are clear environmental advantages to flying the most modern planes. Flying sustainably also creates a positive brand sentiment between an airline and its travellers. These factors will drive segment growth.
IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET BY GEOGRAPHY
The global in-flight entertainment and connectivity market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
North America is expected to dominate the region over the forecast period. North America has the presence of major companies in the in-flight entertainment and connectivity market. Airlines operating in North America are expected to outperform other regions due to the recovery in domestic passenger demand in the United States market. These factors are driving the region’s demand.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the global In-Flight Entertainment and Connectivity market. In addition, a complete analysis of changes in the global In-Flight Entertainment and Connectivity market expenditure, and economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of a pandemic on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market.
The COVID-19 pandemic has affected every aspect of the industry and personal life. The COVID-19 pandemic and its significant impact on the aviation industry. In-Flight Connectivity (IFC). As the impact of COVID-19 that the average cost of satellite capacity will decrease dramatically, and the IFC consumer experience will improve in the coming years. Before COVID 19 IFC service provider’s competition is intensified but the result of COVID has led to accelerate the reshaping of the industry. Airlines were already looking for alternative business models to lessen the financial burden of connectivity while providing a full broadband experience to its passengers. With evolving technologies and a massive increase and change of nature of the capacity, the market for satellite operators is also becoming more competitive in the next five years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the In-Flight Entertainment and Connectivity market is majorly focused on expanding the global growth of the In-Flight Entertainment and Connectivity industry with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the In-Flight Entertainment and Connectivity sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the required demand of consumers which is further contributing to healthy growth in the market.
The key players studied in the market are
- Thales (France)
- Safran. (France)
- Lufthansa Group. (Germany)
- Wipro. (India)
- BAE Systems. (United Kingdom)
- Cobham plc. (United Kingdom)
- Collins Aerospace (United States)
- Panasonic Corporation (Japan)
- ViaSat Inc. (United States)
- Global Eagle Entertainment Inc. (United States)
- Eutelsat Communications (France)
- Gogo LLC. (United States)
- Honeywell International Inc. (United States)
- Inmarsat plc. (United Kingdom)
- Iridium Satellite Communications (United States)
RECENT DEVELOPMENT:
Jan 2023: Thales has launched connected inflight entertainment simple, seamless and secure. The company enable a best-in-class onboard experience with an amazing portfolio of inflight entertainment systems, the most advanced connectivity solutions, and digital services that connect and inspire people throughout their journey.
March 2022: Safran Passenger Innovations (SPI) has announced the launch of Safran’s latest software platform, RAVE OS, with All Nippon Airways (ANA) on Boeing 787-9 Dreamliner, STARLUX on A330 and A321, and Virgin Atlantic on A350 amongst other airlines.
